Explanation
Why the waste happens and who it affects.
When workloads consistently use only a fraction of the available CPU, memory, or network capacity, there is an opportunity to downsize to smaller, less expensive instance types without sacrificing performance. Right-sizing helps balance capacity and efficiency, reducing compute spend while preserving workload stability.
Billing model
The pricing dimensions that drive this cost.
EC2 instances are billed per second (60-second minimum) for Linux, Windows, RHEL, and Ubuntu Pro, and per full hour for SLES, based on instance type, operating system, and purchase model (e.g., On-Demand, Reserved Instances, Spot Instances). Larger instance types incur higher charges regardless of whether the workload fully utilizes the available resources.
How to detect
5 checks to find it in your estate.
- Identify Auto Scaling Groups where instances exhibit low average CPU, memory, or network utilization relative to their capacity.
- Review instance sizing in relation to historical workload peaks and scaling behavior.
- Assess whether smaller, more cost-effective instance types could support the same workload with acceptable performance.
- Evaluate launch templates (and migrate any remaining launch configurations, which are deprecated) to determine if default instance types were selected without performance optimization.
- Confirm with application and infrastructure owners that resizing aligns with performance, availability, and SLA requirements
How to fix
4 ways to remove the waste.
- Evaluate smaller instance types that better match the workload's actual resource requirements.
- Update the launch template for the Auto Scaling Group to use the selected instance type, and deploy changes during a low-traffic window if needed.
- After downsizing, monitor performance metrics to ensure the workload continues to meet application and SLA expectations.
- Regularly reassess instance sizing as usage patterns evolve to maintain ongoing cost efficiency.
Documentation
Vendor references for pricing and configuration.